Morning Insights 18th February

Simon Alagbe

Analyst


Instrument: US 30 (Dow Jones Industrial Average)

Technical Analysis

Bearish Preference: Sell position is envisaged if price trades below 31545 with take profit at 31383

Bullish Preference: Buy position is envisaged if price trades above 31533 with take profit at 31609

Fundamentals:

Unemployment Claims (US) 2:30 PM

Philly Fed Manufacturing Index (US) 2:30 PM

Comment: The index has benefited from the expectation that the new administration of President Biden will deliver a $1.9 trillion stimulus package this month coupled with the fresh announcement that the government of the United States will acquire additional 200 million doses of Vaccine which would inoculate most Americans. 



Instrument: EURUSD

Technical Analysis

Bearish Preference: Sell position is envisaged if price trades below 1.20210 with take Profit at 1.19706

Bullish Preference: Buy position is envisaged if price trades above 1.20569 with take Profit at 1.20789

Fundamentals:

Unemployment Claims (US) 2:30 PM

Philly Fed Manufacturing Index (US) 2:30 PM

Comment: Strong U.S. retail sales provide fresh signs that the Federal Reserve will maintain its accommodative stance, and an ongoing push for further U.S. stimulus have bolstered economic optimism, but some analysts remain cautious because new strains of the coronavirus continue to emerge. With an even larger stimulus package likely to be passed by Congress before the end of March, the U.S. economic recovery could gain more momentum in 2021. 




Instrument: Gold

Technical Analysis

Bearish Preference: Sell position is envisaged if price trades below 1779.23 with take Profit at 1773.16

Bullish Preference: Buy position is envisaged if price trades above 1786.47 with take Profit at 1797.97

Fundamentals:

Unemployment Claims (US) 2:30 PM

Philly Fed Manufacturing Index (US) 2:30 PM

Comment: Gold held near the lowest level in over two months as an uptick in the dollar and further signs of economic recovery pummeled demand for the haven asset. Gold, which posted its biggest annual gain in a decade last year, has dropped over 6% in 2021 amid optimism on growth, fueled by expectations for progress on vaccinations and more economic aid.

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